The overall project is estimated at $220 million inclusive of the purchase of the library. Construction, which is subject to Orient-Express obtaining all necessary permits, is scheduled to start in 2009. The hotel is expected to open in early 2011.
The hotel will house dining, spa and wellness facilities, as well as expanded banqueting and dining space for the company's existing restaurant and dining business, '21' Club. '21' Club backs onto the library premises in its location at 21 W. 52nd St. and the two buildings will be connected. The property will be marketed under a new '21' Hotel brand name. The original '21' Club will be preserved at its current location, with enhanced facilities.
"Expanding our luxury brands through select real estate development projects is a core strategy for Orient-Express," notes Paul White, Orient-Express Hotels' president and CEO, in a prepared release. "In New York, everything points to the need for new luxury hotel rooms, especially in Midtown Manhattan. We see this as an avenue to establish a new standard of boutique property and create a luxury experience for both leisure and corporate travelers."
David Offensend, COO of the New York Public Library, notes that the agreement presents an "extraordinary opportunity for us to create a modern, new circulating library at the same location as our current Donnell facility, which was opened in 1955, and is outdated. The cost of renovating Donnell is prohibitive. With this agreement, we'll be able to embark on the creation of a technologically advanced Donnell Library for our users, one that can set the standard for the 21st century."
The New York Public Library will retain approximately 28,000 sf in the building for the new Donnell Library, which will occupy three levels, including the ground floor of the '21' Hotel building. The Orient-Express project will provide upgrades to the library's outdated infrastructure, including overhauls to its HVAC system and elevators.
The library will close to the public in fall 2008, and the rebuilding is expected to be completed in no more than three and one half years. During construction, the library will seek a temporary site to provide Donnell's essential services to the public and develop a detailed plan to make its collections available at other New York Public Library locations.
Orient-Express noted that over the past several years, the conversion of many New York City hotels into condominiums has taken much high-end lodging supply out of the market. Smith Travel Research data shows 23 hotels have closed in New York since 2000, with many of the hotels converted to luxury condominiums during the housing boom. The hotel room reduction coincides with demand surging from overseas travelers capitalizing on a weak US dollar. This has resulted in higher rates and corresponding profits for the New York hotel industry. Recent industry studies show that New York City could absorb a further 10,000 room supply without affecting overall occupancy and pricing.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
